Romania Surviving the Waves of Recent Political Tsunamis in Europe

Romanian economy
Forecasts
Fact box

Real GDP (y-o-y)
2016 — 4.2%
2017 — 3.7%

Private consumption
2016 — 6.8%
2017 — 4.5%

Public consumption
2016 — 3.5%
2017 — 3.1%

Exports of goods and services
2016 — 5.8%
2017 — 6.0%

Imports of goods and services
2016 — 9.2%
2017 — 8.1%

Unemployment rate
2016 — 6.6%
2017 — 6.5%

Source: EU Commission

Nicholas S. Hammond

About Nicholas S. Hammond

Nicholas Hammond was the first English solicitor to open an office in Romania in 1990. He had started his career in the City of London in the 1970. His practise covers all aspects of corporate and commercial law including company formations and corporate restructuring, joint ventures and inward investment. He has advised clients in such varied fields as aviation, insurance, banking, retail,agriculture, project finance as well as venture capital investments, real estate matters as well as leasing and Romanian intellectual property matters.

Romania has come a long way in the last twelve months.  The technocrat government that was imposed on the country, following the resignation of the former Social Democratic Party (PSD) prime minister, has seen the country enter a period of quiet expansionism.

The efforts of the various bodies that deal with corruption and organised crime are also bearing fruit: the perceived level of corruption is falling and it is easier to do business. The sight of former oligarchs on their way to prison, and/or having sequestration orders made against them and their assets, is encouraging a new breed of business men and women to take bold action in developing new businesses.

The down side is that government officials sometimes delay making decisions, so as not to be thought of as corrupt.

Now, it is possible that the upcoming elections, in November 2016, might produce a stable government for long enough to enable further steps to be taken. The perceived wisdom is that the Social Democratic Party will be returned, as it is the largest party, although the size of its majority cannot currently be foreseen.  The opposition is weak and fractured, so perhaps the return of the PSD will give the extension of stability needed.  The only worry for the European Union and Western governments is to how deep the influence of the PSD goes and will their re-election to power open the gates to further corruption and influence peddling.

Although the Romanian state is still involved in many areas of economic life, the government’s, and by extension the PSD’s, influence is slowly being reduced.  This means that the private sector is becoming more influential and it is easier to do business, on a more level playing field.

Over the last four years Romania has returned to a period of high growth and now it is part of, what I and a few organisations call, High Growth Europe, although it continues to suffer from a lack of investment trust. The framework is in place to allow further expansion in the Romanian economy, over the next few years.

Much has been written about the effects of IT businesses in Romania and there is no doubt that this field of business has expanded exponentially, and will continue to expand over the next few years.

The question also has to be asked as to whether the upheaval in Turkey will affect Romania, and will Britain’s exit from the European Union have an impact?

As regards Turkey, there are already large Turkish investments in real estate, financial services and industry in Romania.  This has happened over the last twenty-five years, despite the changes in government in Ankara.  There should be no real change, provided the Bosporus is kept open and trade continues to flow into the Black Sea.

As for Brexit: the United Kingdom will have to push hard for exports and take imports in exchange.  This can only be good for Romanian industry and for business people with an outward vision.

Based on all of the above, the future looks good for Romania, provided there are no internal surprises.

_______________

The views expressed in this opinion editorial are the author’s own and do not necessarily reflect Emerging Europe’s editorial policy.

RELATED ARTICLES

The CEE Region Is Making Advances in Prioritising Waste-to-Energy Projects

Outsourcing in Germany: Stop Talking at and Start Talking to

Europe at Odds over OPAL and Nord Stream 2

Examining How a Strong Swiss Franc Could Single-Handedly Topple Poland’s Economy

Bulgaria Needs a Reform-Oriented Government to Take Full Advantage of its EU Membership

bulgaria emerging europe

United or Divided? Europe in the Face of the Challenges of Tomorrow

Emphasising the Incongruence Between the V4 Countries

Macron emerging europe

A Bosnian Referendum Shows Russia’s Influence in the Balkans—As Well As Its Limits

Nagorno-Karabakh Conflict Moves from Frozen to Kinetic

Nagorno-Karabakh

The Morawiecki Plan Promises a Brighter Future for Poland

Finalising the DCFTA is Expected to Bring Multiple Benefits to Ukraine

Not All Quiet on the Eastern Front

EU Visa-Liberalisation Strengthens Georgia’s Pro-Western Path

georgia emerging europe eu

The Sharing Economy Could Bring New Business Models to CEE

The Voice of European Business Must Be Heard Loud and Clear by Brexit Negotiators

Poland Needs to Cling to the Eurozone

zloty euro emerging europe

Why Hungary’s New NGO Law Is Harmful for Business

Budapest, Hungary. Aerial view of the old city Budapest, Hungary with river and Parliament Building with cloudy blue sky

Are There Differences Between How Tax Regulations in Poland and IAS Treat Intangible Assets?

Hungary and Israel: the Collision of Past and Present

Budapest synagoge

Old Fashioned Skulduggery Overshadows the Elections in Moldova

Serbia’s New PM Is Cut From a Familiar Cloth

Serbian flag emerging europe

Is there any prospect of ‘Polexit’?

poland european union polexit

Changing Perspectives and Showing That True Romania is a Vibrant Innovative Country

International Women’s Day — Let’s Take Action And Then Celebrate

The EU’s Benign Neglect Of Eastern Europe

Business Moving Forward with Cautious Optimism — Can Investors Win the Confidence Game?

Measuring Growth of Societies with GDP Alone Shows an Incomplete Picture

European Volatility Makes Economic Development Slower for Ukraine

Partnership is the Key to CEE-Indian Business

Will the New Five-day Visa-free Regime Encourage More Visitors to Belarus?

Polish Tax Laws — Fighting a Winning Battle Against Tax Evaders

Poland Challenges the European Identity

Poland emerging europe

Hungary’s Nationalist Assault on Free Enquiry

victor orban ceu

Macedonia’s Controversial Coalition Government

SKOPJE MACEDONIA emerging europe

Will a Two-speed European Union Side-line the Visegrad Four?

CEE — Do We Need a Launch Pad For Our On-Site Tech Intelligence in the Silicon Valley

A New Division Between Eastern And Western Europe?

PiS Uses Media Control to Bring Poland to Heel

Jaroslaw kaczynski pis emerging europe

Slovenia’s Presidential Election: Pahor Expected to Romp Home

Slovenia flag against blue sky waving in wind

Brexit: Let’s Learn the Lesson and Hope a Better Europe Will Arise

Albania’s Election Apathy

tirana albania

We, the Post-Communist Generation, Have the Skills to Rid of the Past And Create Our Own Future

Poland’s Unicorn, Slovakia’s Flying Car and the Future of Europe

Czech Republic Renaming Has Real Economic Costs

People Power Reminds the Government of the Rule of Law

Regional Relations in the Western Balkans: Moving Beyond Folklore

Bosnia and Herzegovina flag with Serbia flag, 3D rendering

Swimpassing Dniester Without Prejudice To Democracy

Parliament of the republic of moldova in chisinau, national flag, stefan cel mare street, spring time with blue sky

The EU’s Choice: Fundamental Reform Or Disintegration

Global Expansion in the Digital Age

Ex-Transition Economies’ FDI Recovery

dollar euro fdi

A Positive and Modern View of Entrepreneurship

The Long Tail of Global Expansion

Ukraine’s Reputation for Cheap Labour May Not Ring True in the Long-term

China: A Giant That Is Hard to Crack

History as Destiny? Institutional Erosion in Ukraine and Poland

After 25 Years of Restructuring, the Romanian Power Sector Is at a Crossroad

The Competitive Edge in Central and Eastern Europe

SOFIA BULGARIA - MAY 5: View of the Ivan Vazov National Theatre in Sofia on May 5 2016. Sofia is the largest city and capital of Bulgaria.

Moldova Falls Victim to Politicising

moldova emerging europe

Will Poland Leave the European Union?

polexit

Where’s My Cheese? – The GREAT British Food Tour 2014

Cheese Shop

Impact of Brexit on EU-CEE Not Overstated

theresa may brexit

Only a United Opposition Can Defeat Poland’s Ruling Law and Justice Party

Classical building of Polish parliament. Warsaw in Poland.

Is the Level of Foreign Ownership a Problem in Emerging Europe?

Flags of European countries flying from their capital cities. Viewed from the South.

The Capital Markets Union: a New Beginning in the European Financial Sector?

2018 Elections — Vital Decisions for Hungary’s Future

Victor Orban energing europe

The GREAT London Food Scene

Bakery in London

LGBT in CEE — A New Acceptance Is Being Born From Migration

CEE-Benefits and Disadvantages of Joining the Eurozone

forint zloty euro

Adam Smith’s Warning for Poland

Falling into Old Ways in 2017? Ukraine’s Struggle for Functioning Economic Institutions

Belarus 2020: Turning the Vicious Circle Into an Upward Spiral

Poland: Is it Ready, and is it Time to Adopt the Euro?

Is the CEE Region About to Steal the Outsourcing Crown From India?

Amazing view on the Taj Mahal in sunset light with reflection in water. The Taj Mahal is an ivory-white marble mausoleum on the south bank of the Yamuna river. Agra Uttar Pradesh India.

Big Fish, Small Fish, Where to Fish? On the Eve of the Fourth Industrial Revolution

Poland’s Capital Saturation Lower Than the Czech Republic’s

deloitte fdi poland

The Right to Water: Who Can Change Today’s Situation?

Under Promise, Over Deliver: Prospects for the EU’s Eastern Partnership in 2018

Eastern partnership

Central and Eastern European Consumers Are Joining the Global Trends for Change

Prepare for a New Europe

EU-CEE Is Still Growing at a Healthy Rate

Prague emerging europe

Political Tensions Rise As Croatia Allegedly Breaks the Dublin III Refugee Regulation

croatia migrants

The Netherlands’ Objection to the Ukraine-EU Association Agreement could be Costly to Europe

Czech Own Currency Insures Against Euro Losses

Euro Czech republic emerging europe

Resignation in Ukraine: War, Revolution, Crisis — Some Things Never Change

Europe Needs To Be More Proactive In Embracing Armenia

Could the West At Least Help Ukraine To Insure FDI Against Political Risks?

Defending EU Values in Poland and Hungary

Eu hungary poland

How Will Trump’s Visit Affect Polish Politics?

Donald trump

Poland’s Confusing GDP Growth

When Neutrality Isn’t an Option

President of the Russian Federation Vladimir Putin

Good Match But Unlikely Marriage

Are Labour Shortages Driving Economic Growth?

E-lifestyle and Cyber Security: Some Views From Estonia

Cyber Security Protection Firewall Interface Concept

Belarusian Journalists Still Face Huge Problems

Fiscal Policy Predictability in CEE — It’s Time for Change

How Will Poland Approach the Brexit Negotiations?

Breaking With Imitations of the Past

Azerbaijan: The Rich Get Richer and the Poor Get Nothing

Baku

January Kicks Off an Exciting Year for Emerging Europe

Poland’s Drift Away From Democracy

Can Armenia Keep a Foot in Both Camps?

European union armenia russia emerging europe

How strong is V4?

Viktor Orban

Stuck in Neutral: Georgia’s Constitutional Reforms

Tbilisi Parliament Georgia

The Global Outsourcing Industry — the Rise of the Phoenix

Let’s Stop Wasting Time Redefining our Place in Europe

After Its Significant Rise the Georgian Economy May Now Fall

Panorama of Tbilisi, Georgia in sunset rays. Vivid, saturated, splittoned image.

Leave a Reply

Your email address will not be published. Required fields are marked *